Is it worth it to invest in precious metals? If yes then what metals you can see from the growth in the near future?

Thu Apr 28, 2016 9:11 am

oldguySenior Member

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The basic price of the commodity gold stays mostly fixed (relative to other goods/services - corn, cattle, hogs, milk, eggs, oil, coal) - while the currency that you use to measure gold is what fluctuates. Eg, today gold is priced at about 1110 EUR. If the EUR falls in value by a factor of 2, then the apparent price of gold will be 2220 EUR. Ie, trading gold/silver etc is mostly a game of trading currencies.

Thu Apr 28, 2016 3:07 pm

payment proofSenior Member

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Gold is a hedge against inflation and something people seem to flock to when the stock markets are down.

I remember the hyperinflation of the 80's - all of the Gold Bugs were selling books, TV ads, newspapers, etc - Jim Dynes, Howard Ruff. Gold was about a $1000 US dollars in 1980, still about $1000 35 yrs later.

Fri Apr 29, 2016 1:33 pm

Arthur110gamerMember

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Thanks for sharing

Tue Aug 09, 2016 12:08 pm

danerlavigneMember

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Gold is also something that is worth money no matter what country you are in. If you are holding all of your money in any one particular currency, and that currency is devalued or not worth anything anymore, then you are out of luck. Gold will always be worth something.

Fri Aug 19, 2016 9:56 pm

littleroc02usModerator

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Remember that Gold is just a rock that society puts a value on. I could take a bottle cap and if society wanted to, they could value it also. I'm not sure I'd want to put my savings into something that is an innaminate object. I'd prefer to invest in the the US stock Market and real estate, because historically they've had great success. Gold peaked during the Great Recession, but hasn't performed since or in the past.

Risk comes from not knowing what you're doing. (Warren Buffet)

Mon Aug 22, 2016 3:51 pm

ken-do-nimFull Member

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Where do you recommend purchasing actual gold and silver?

Wed Oct 05, 2016 7:20 pm

satishsanjitNew Member

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Since time immemorial, both gold and silver have come to known as the most valuable among metals. The question is which among the precious metals is ideal for investment purposes and why are they unpredictable? If this is your first time to engage in precious metals, take the time to read and familiarize yourself with these metals in this blog http://itrader-commodities.com/precious-metals/ how they work, and how to invest in them.

Tue Jan 03, 2017 2:14 am

christcorpPreferred Member

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You shouldn't use the word invest, as in "make money", when it comes to gold and silver. As already said, gold and silver is a way to preserve wealth. A gold or silver ounce can buy today, close to what it could buy 10, 20, 50,, 100 years ago. But what you could buy with $100 or $1000, 10, 20, 50, or 100 years ago, you can't buy with today.

Should you have gold and/or silver? Most definitely yes. Is it part of your investment portfolio? No. Some people buy gold and silver as an investment. That is silly. An investment implies you will make a profit and build capital gain upon it and interest should accumulate. That's not going to happen generally with gold and silver. Can you make gains? Yes, but usually in the short term.

Think of gold and silver as a savings account, that doesn't pay interest, (like most savings accounts), but it keeps up with inflation. $10,000 in the bank today, won't buy in 20-30 years what is can today. But 500 ounces of silver today, worth about $10,000 will be worth roughly the same in 20-30 years what it is worth today. I recommend that you have about 30% of your liquid savings in gold and silver. Not your 401k, IRA, or mutual funds/stocks. But your liquid assets. Obviously, in times of inflation or similar economics, your gold and silver will probably be worth more than 30% of your liquid assets. But that's what it's suppose to do.

Two final things. Gold and silver are only real, if you can hold it. Only buy physical gold and silver. Not etf, stocks, mining stocks, etc. physical silver and gold only. 2nd, silver is way under valued and unlike gold, it is extremely valuable for industrial purposes. Electronics, solar energy, medical supplies, chemical use, plus hundreds of other uses. The industrial needs is the one area it can be seen as an investment. It's NEEDED much more than gold. I recommend silver over gold.

Sat Feb 11, 2017 5:08 pm

michaelbronislavContributing Member

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hello, since we are already talking about Gold and many are investing in this yellow commodity, i just want to open up a topic here, regarding the right timing investing Gold. because understanding how and when to invest in Gold can mean the difference between generating high profits or losing your investment, Invest in Gold : Choosing the Right Timing

Wed Feb 15, 2017 7:17 am

christcorpPreferred Member

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As I mentioned previously, gold and silver are not; or should I say "Should Not" be considered investments. Those who INVEST in gold and silver are simply gambling. No better or worse than those who "Bet" on "Longs and Shorts". (Again, gambling).

I am all for owning gold and silver. (Mostly silver). I believe everyone should own some. I've been following the metals, buying, blogging, and studying it for more than 25 years. I think it's very important to have as part of your assets. But anyone who believes it's an investment, doesn't know the first thing about it. Even on my blog, when people write to me, if they even use the word "Investing"; I tell them I won't even reply to them.

Silver and gold is liquid. There are basically 5 reasons to own it. Some reasons can be short term. Some are long term. Silver and Gold only work when you have time on your side. Have I "MADE MONEY" with silver and gold? Most definitely. But that was simply opportunistic. It wasn't the goal. I simply used a good opportunity to sell some and take the profits to buy a high price item I wanted to buy anyway; but obviously at a discount. I've also used "Opportunities" to sell and use the profit to reduce debt. But in both cases, (2 of the 5 reasons to own silver/gold), making a profit was never the goal, and I would have been just as happy holding onto it for a lot more time to preserve my wealth, supplement my retirement income, or as an emergency fund in case of hyper-inflation. (The other 3 reasons for owning silver/gold).

So for the practical folks out there interested in possibly buying silver or gold; definitely look into it. But never consider it an "Investment". Not in the regard of a traditional investment. Can you make a profit? Sure. You definitely won't lose. But it could be many years. Not something you buy and sell daily like stocks. Again; think of it as a savings account that DOESN'T LOSE it's Purchasing Power.

Of course; there are the idiots who buy and sell the PAPER GOLD AND SILVER. This is a scheme. These are the people trying to make money overnight. These are the ones who are gambling. The last time I looked in-depth; about 2 years ago; according to Bloomberg; there was about a 5 TRILLION Dollar Silver market annually. However, there was only about 1 BILLION ounces of physical silver being mined per year. Or roughly 20 BILLION DOLLARS. This is a 250 to 1 ratio. What does this mean??? Simply put: The ETF's, Stocks; and other paper silver and gold being bought and sold; DON'T have the PHYSICAL SILVER and GOLD to Back it. That's why when you take this paper silver and gold and say you want to TRADE IT IN for the PHYSICAL; they have up to 6 months to give you your silver and gold. There simply isn't the metal there to back to paper. If the time comes that people demand the physical metals; the paper market will totally crash and everyone will be out of their "INVESTMENTS".

Silver is one of the most widely used metals in industry. Electronics, solar, medical supplies, and the list goes on. The industry can't use PAPER SILVER for this. Gold is mostly investments and jewelry. Bottom line. If you buy paper silver and gold, you AREN'T INVESTING...... you're GAMBLING. It's your money, do as you want. But for the person interesting owning PHYSICAL silver and gold, for one of the 5 reasons I posted earlier; (Or even a 6th reason if you think there may be an economic Armageddon some day); definitely look into it. But remember..... IF YOU CAN'T HOLD IT, THEN YOU DON'T OWN IT.

Wed Feb 15, 2017 3:29 pm

michaelbronislavContributing Member

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@christcorp whatever you say, the concept is still "INVESTMENT" .. it's your opinion that you "SHOULD NOT" consider them investment. its your choice... we all have different views on these matters.

Thu Feb 16, 2017 1:16 am

christcorpPreferred Member

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You're correct. We all have different views. And people come to forums to exchange ideas, opinions, and to gain knowledge.

And for those who want knowledge, "Investing" in gold and silver is not a good "Investment". To buy a 1 oz American Gold Eagle, at the CHEAPEST place, will be between $1280-$1300. Considering the Spot Price of gold is $1239 an ounce, That right there, means that you PAID 5% commission just to buy the coin. So, you have to wait until the spot price of gold gets to $1300 JUST TO BREAK EVEN.

You can definitely make money with gold and silver, but as I mentioned earlier, you must have time on your side. Same with Silver. Spot price is right around $18 an ounce. A generic 1 oz silver round will cost about $19-$20. And American Silver Eagle will cost about $21. You will need to wait for spot price to get back to that, just to break even. Let alone make a profit. Again; you can make money, but it takes time.

The only way you can potentially make "Quick" money in gold and silver, is to play SHORTS and LONGS. But that isn't investing. That's gambling. That can be rationalized anyway a person wants to do it, but it's still gambling. As far as gold and silver ETS's, Stocks, mining stocks, etc. That too is gambling. WHY? Simple. There isn't anything to back it. When you invest in a stock of a company, you are investing in a company. The company exists. They employ people. They produce a product or service. HOPEFULLY they pay dividends and you make money. There is no gold or silver to back an ETF or stock. They say there is, (The COMEX), but there isn't. On average, there is a 250:1 ratio between how many PAPER ounces of silver there is; and how much actual PHYSICAL silver there is available. In other words, if all of the people who had paper gold and silver ETF's and Stocks wanted to trade the paper in for physical gold and silver, there wouldn't be enough on the planet to give them. There investment would automatically; OVERNIGHT; be worth about 1/250th of what they paid for it.

You can call it investing all you want. I know better. And hopefully, now others know better. Buying PHYSICAL gold and silver is a very good thing. I recommend about 30% of your liquid assets; (Meaning cash at home or in the banks) be in silver and gold. (Not your IRA, 401K, etc.) That's your INVESTMENT. And Gold or Silver IRA's and such isn't REAL. That's PAPER gold and silver. They say they have your physical gold and silver to back it, but if you can't physically hold it, then it doesn't exist. So yes, buy silver and a little gold. It will preserve your wealth and help you through inflationary times or to supplement your retirement. But if you want to INVEST in gold and silver; fine. It's your money. I just suggest individuals realize it's not like INVESTING in the S&P500, an index fund, or even an individual stock. Those investments have a company, product, service, employees, and assets to back up what you're investing in. PAPER Silver and gold have nothing to back it, Maybe a little if you have stock in a Mining Company. But that's not investing in Gold and Silver. That's investing in a company. Big difference.

GOLD and SILVER..... ARE MONEY!!!! It's the only REAL MONEY!!!! The difference between it and the paper 10 or 20 dollar bill in your wallet, is that the only thing backing the paper in the wallet is the "FULL FAITH AND CREDIT OF THE UNITED STATES". Gold and Silver are TANGIBLE. It is it's OWN BACKING. But just like the paper dollars, they don't make interest or compound. But UNLIKE the paper dollars, throughout history, they have maintained their purchasing power and basically maintained inflationary changes. $100 in the 1920's was a lot. Today, it isn't worth nearly as much. But an ounce of silver or gold in 1920 and 2017 both have similar values. Not exact; (Because of changes in technology and deliverables); but similar.

But you're right. We have different views on the matter. And in many things, I'm the first person willing to "Agree to Disagree". But not on this. There's nothing to "Agree to Disagree" on. Gold and Silver don't produce interest. There is no compounding of interest. It's not an investment in the same sense of the word for investing in stocks, bonds, funds, etc.

As Andrew Wilkow says: "We're right, they're wrong. That's the end of the story. The arguments on this radio program cannot be broken."

Thu Feb 16, 2017 3:38 pm

michaelbronislavContributing Member

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i don't know what you're up to.. but all i can say is it is still INVESTMENT whether on the physical assets or company... and since you said "YOU KNOW BETTER" then i guess i should stop sharing my opinion about this..